Trade of the Day – SoFi Technologies, Inc. (NASDAQ: SOFI) November 6, 2023 186

SoFi Technologies, Inc. (NASDAQ: SOFI)

(Current Price: US$8.01) – TECHNICAL SELL

Sell price: US$8.01     Stop loss: US$8.70 (-8.61%)  

Take profit 1: US$7.00 (+12.61%)     Take profit 2: US$6.50 (+18.85%)    

 

 

(1) & (2): SoFi Technologies, Inc. has been trading in a downtrend channel since breaking down of a bearish flag in September, which provides a bearish signal

 

(3): This is supported by decreasing momentum recorded on the Moving Average Convergence Divergence (MACD) technical indicator, which is forming a series of lower highs and lower lows, confluent with the bearish price action

 

(4): The price closed with a dark cloud cover bearish candlestick pattern on 3rd November at the confluence of a downtrend channel resistance and previous support turned resistance following a breakdown at the US$8.30 level

 

Should the price continue its downtrend, it could potentially retest the first support level at US$7.00 which was the recent swing low support in end October

 

It could then head towards the next support level at US$6.50, which is confluent with the downtrend channel support and previous swing high resistance in May

Expected timeline of the trade is 1-4 weeks from the date of report issuance

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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